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Hawaii hotels: Flat average daily rate, lower occupancy so far in 2019

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For the first three months of 2019, Hawaii hotels statewide reported flat average daily rate (ADR) and lower occupancy, which resulted in lower revenue per available room (RevPAR) compared to the first quarter of 2018.

According to the Hawaii Hotel Performance Report published by the Hawaii Tourism Authority (HTA), statewide RevPAR declined to $236 (-3.3%), with ADR of $292 and occupancy of 80.8 percent (-2.7 percentage points) in the first quarter of 2019.

HTA’s Tourism Research Division issued the report’s findings utilizing data compiled by STR, Inc., which conducts the largest and most comprehensive survey of hotel properties in the Hawaiian Islands.

For the first quarter, Hawaii hotel room revenues fell by 4.7 percent to $1.13 billion compared to the $1.18 billion earned in the first quarter of 2018. There were more than 74,300 fewer available room nights (-1.5%) in the first quarter and approximately 190,500 fewer occupied room nights (-4.7%) compared to a year ago. Several hotel properties across the state were closed for renovation or had rooms out of service for renovation during the first quarter.

All classes of Hawaii hotel properties statewide reported RevPAR declines in the first quarter of 2019 except Upper Midscale Class properties ($134, +0.6%). Luxury Class properties reported RevPAR of $452 (-5.4%) with ADR of $594 (-1.2%) and occupancy of 76.1 percent (-3.3 percentage points). At the other end of the price scale, Midscale & Economy Class hotels reported RevPAR of $155 (-5.0%) with ADR of $187 (-0.5%) and occupancy of 83.1 percent (-3.9 percentage points).

Comparison to Top U.S. Markets

In comparison to top U.S. markets, the Hawaiian Islands earned the highest RevPAR at $236 in the first quarter, followed by the San Francisco/San Mateo market at $210 (+15.9%) and the Miami/Hialeah market at $208 (-3.5%). Hawaii also led the U.S. markets in ADR at $292 followed by San Francisco/San Mateo and Miami/Hialeah. The Hawaiian Islands ranked fifth for occupancy at 80.8 percent, with Miami/Hialeah topping the list at 83.0 percent (-2.1 percentage points).

Hotel Results for Hawaii’s Four Counties

Hotel properties in Hawaii’s four island counties all reported RevPAR decreases in the first quarter of 2019. Maui County hotels led the state overall in RevPAR at $337 (-2.7%), with ADR at $428 (-0.9%) and occupancy at 78.6 percent (-1.5 percentage points).

Kauai hotels earned RevPAR of $228 (-10.2%), with flat ADR at $305 (+0.2%) and lower occupancy of 74.8 percent (-8.7 percentage points).

Hotels on the island of Hawaii reported a decline in RevPAR to $225 (-9.7%), due to a combination of decreases in both ADR ($285, -2.0%) and occupancy (79.1%, -6.7 percentage points).

Oahu hotels earned slightly lower RevPAR at $196 (-0.9%), with ADR at $236 (+0.8%) and occupancy of 83.0 percent (-1.4 percentage points).

Comparison to International Markets

When compared to international “sun and sea” destinations, Hawaii’s counties were in the middle of the pack for RevPAR in the first quarter of 2019. Hotels in the Maldives ranked highest in RevPAR at $575 (+4.5%) followed by Aruba at $351 (+11.2%). Maui County ranked third, with Kauai, the island of Hawaii, and Oahu ranking sixth, seventh and eighth, respectively.

The Maldives also led in ADR at $737 (+5.2%) in the first quarter, followed by French Polynesia at $497 (-1.1%). Maui County ranked fifth, followed by Kauai and the island of Hawaii. Oahu ranked ninth .

Oahu trailed Phuket (84.5%, -6.3 percentage points) in occupancy for sun and sea destinations in the first quarter. The island of Hawaii, Maui County and Kauai ranked fourth, fifth and ninth, respectively.

March 2019 Hotel Performance

In March 2019, RevPAR for Hawaii hotels statewide declined to $227 (-4.3%), with ADR of $285 (-1.1%) and occupancy of 79.6 percent (-2.7 percentage points).

In March, Hawaii hotel room revenues fell by 5.9 percent to $373.3 million. There were more than 27,200 fewer available room nights (-1.6%) in March and approximately 66,850 fewer occupied room nights (-4.9%) compared to a year ago. Several hotel properties across the state were closed for renovation or had rooms out of service for renovation during March. However, the number of rooms out of service may be under-reported.

All classes of Hawaii hotel properties statewide reported RevPAR declines in March. Luxury Class properties reported RevPAR of $443 (-7.2%) with ADR of $583 (-3.1%) and occupancy of 75.9 percent (-3.4 percentage points). Midscale & Economy Class hotels reported RevPAR of $150 (-2.9%) with ADR of $182 (+0.8%) and occupancy of 82.0 percent (-3.1 percentage points).

Hotel properties in Hawaii’s four island counties all reported lower RevPAR for March. Maui County hotels reported the highest RevPAR in March at $336 (-1.4%) with ADR of $421 (-1.6%) and flat occupancy (79.8%, +0.2 percentage points).

Oahu hotels reported lower occupancy (80.4%, -2.3 percentage points) and flat ADR ($230, -0.2%) for March.

Hotels on the island of Hawaii continued to face challenges in March, with RevPAR dropping 11.2 percent to $216, ADR to $272 (-4.9%) and occupancy to 79.2 percent (-5.7 percentage points).

RevPAR for Kauai hotels fell to $213 (-14.6%) in March, with declines in both ADR to $286 (-4.5%) and occupancy to 74.4 percent (-8.8 percentage points).

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Visa waiver leads to spike in bookings to Brazil

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Brazil’s visa waiver policy announced in March is already generating positive results. Recent data from a study done by Amadeus Group shows a significant increase in the number of reservations made in the United States, as well as in Canada, Japan and Australia, the other three other countries benefiting from the new policy. Amadeus is one of the 10 largest technology companies in the world and one of the three largest in the travel segment.

In the United States, the increase was 53% in the number of trips confirmed for June and 97% in July compared to the same period of last year. In Canada, growth was 86% for June, 54% for July and, expressive, 135% for August this year.

“The numbers show that visa exemptions for strategic countries are a good measure, which generates jobs and income in Brazil. It is time for the country to take advantage of all its tourism potential”, said Marcelo Alvaro Antonio, the Brazilian Minister of Tourism.

Here are some suggestions of amazing destinations in Brazil for all tastes:

• Historic Cities: If you like your vacations with a heavy dose of culture, Brazil should definitely be on your list. We have several historic cities, with a heritage dating back to its colonial period. In Minas Gerais State, you can find cities like Ouro Preto and Diamantina – the center of gold mining in Brazil in the 18th century. In the Northeast state of Bahia, you will find Salvador, the first capital of Brazil, and a city that also has a rich history of its African heritage. A few miles from Salvador, in the State of Pernambuco, you will find the city of Olinda. Founded by the Portuguese in the 16th century, the city is linked to the sugar cane industry, with gorgeous Baroque churches, convents, and views to die for.

• Sun and Beach: With more than four thousand miles of coast, its exuberant nature bordering the beaches with coconut trees, and tropical forests, Brazil has options for all travelers looking to spend time outdoors. Most know the famous urban beaches of Rio de Janeiro, Florianópolis or Fortaleza, but there are also small beach towns like Trancoso, Boipeba, and Jericoacoara that can offer unique spots to get a tan. You can even find a stretch of sand in the Amazon, in the beaches near Manaus, along the Rio Negro.

• National Parks: Brazil’s natural beauties go beyond beaches and forests. The country is also blessed with great diversity, which includes waterfalls, canyons, wetlands and many different types of ecosystems throughout its many national parks. Think- Iguazu Falls, one of the most important forest reserves in South America. Another highlight is the Pantanal, in the central region of the country, home to hundreds of endangered species. And of course, the Amazon Rainforest.

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A new Tourism potential in Tanzania: The Southern Circuit

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A new Tourism potential is about to be unlocked In Tanzania. All roads and international air routes will in the near future, be leading to the Southern circuit, as the tour operators have major plans to open new tourism revenue streams.

Complimenting the Government’s drive to transform the Southern tourism circuit, the key tourism players are currently scouting for apt partners to invest heavily in accommodations as part of a strategy to open up the area for travel.

It is understood, the Fifth Government under President Dr John Pombe Magufuli is working overtime to put up hardware infrastructures as it seeks to unleash the full economic potential of the area.

Impressed by the government move to designate Iringa as the Southern circuit hub, Tanzania Association of Tour Operators (TATO) last week deployed a delegation led by its Vice-Chairman, Mr Henry Kimambo to identify new potential members in its effort to establish a chapter in the area to cater for the entire Southern circuit.

“We want to replicate the best practices from the northern tourism circuit to Southern shred,” Mr Kimambo told the tour operators in Iringa during the engagement meeting.

He revealed that TATO plans to bring its services close to its members in Southern circuit, comprising Morogoro, Iringa, Njombe and Mbeya anytime soon.

This implies that the 36-year-old advocacy agency for a multi-billion dollar industry, with its base in northern safari capital of Arusha, will soon have a liaison office in Iringa to take care its Southern circuit members.

Mr Kimambo said that his association was aware that the Southern circuit based tour operators not only have their own different issues but also need strong ties with their northern tourism circuit peers if the tourism potential is to be unleashed.

Presenting the benefits before the Southern Circuit tour operators, TATO Chief Executive Officer, Mr Sirili Akko said lobbying and advocacy is a core service offered by his association.

“Members enjoy the conducive business environment as TATO represent a collective voice for private tour operators in lobbying and advocate towards the common goal of improving the business climate in Tanzania” Mr Akko explained.

TATO also provides unparalleled networking opportunities for its members, allowing individuals tour operators or company to connect with their peers, mentors, and other industry leaders and policymakers.

As a member, one is in the unique position to attend conventions, seminars, award dinners and other related events with like-minded professionals in the field. These events are attended by the brightest minds and are a hotbed of ideas and collaborative efforts.

“An association’s annual General meeting represents an incredible opportunity for members to meet and network with the largest gathering of their peers during the year” Mr Sirili explained.

TATO also trains its members on key issues such as labour laws, tax compliance, corporate social responsibility, conservation issues, among others, he noted.

As if that was not enough, TATO members also enjoy the service of having a platform where they channel their operational or policy related challenges to the government for a solution.

Members are also bonded together as they advocate for their peers and share their challenges and triumphs with one another, TATO CEO explained.

“Indeed, TATO provides members with a competitive advantage because they become active, informed members of their industry” Mr Sirili said, stressing that his members also get updates on all issues on tourism and related sectors by providing resources, information, and opportunities they might not have had otherwise.

Thanks to USAID PROTECT Project for building the capacity of TATO, an umbrella organization with over 300 members, for it to become an efficient advocacy agency for the tourism sector.

Project coordinator, Mr Jumapili Chenga said the scaling up membership base for TATO is one of his scheme’s components.

Iringa Region Tourism Officer, Ms Hawa Mwichaga was grateful that at the long last a strategy to unlock the Southern tourism circuit has stepped up a gear.

Tour operators from Iringa, Mbeya and other regions namely Ernest Luwala, Nancy Mfugale, Modestus Mdemu, Serafina Lanzi supported the idea of joining TATO as a concrete step to spur tourism in southern circuit.

Natural Resources and Tourism Ministry’s officer-in-charge for Southern Circuit, Ms Tully Kulanya said her zone has a great potential for tourism business.

“The Southern Parks are the perfect destinations for travelers looking for plentiful and rare wildlife in a remote area of Africa” Ms Kulanya noted.

The national parks namely Mikumi, Udzungwa, Kitulo Ruaha, as well as Selous Game Reserve, have fewer visitors and give the feeling of being all-alone. Activities include game drives in open vehicles, boat safaris, and walking safaris. These safaris include flights between the parks.

Tanzania’s earnings from tourism jumped 7.13 percent in 2018, helped by an increase in arrivals from foreign visitors, the government has said.

Tourism is the main source of hard currency in Tanzania, best known for its beaches, wildlife safaris and Mount Kilimanjaro.

Revenues from tourism fetched $2.43 billion for the year, up from $2.19 billion in 2017, Prime Minister, Mr Kassim Majaliwa said in a presentation to parliament.

Tourist arrivals totaled 1.49 million in 2018, compared with 1.33 million a year ago, Majaliwa said.

President John Magufuli’s government said it wants to bring in 2 million visitors a year by 2020.

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How does India travel? Let us count the 94 billion ways

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Bain & Company and Google India are together launching a report on “How Does India Travel.” According to the report, the Indian traveler has come of age, spending approximately $94 billion in 2018 on around 2 billion domestic and international trips. This has helped the Indian travel and tourism industry achieve unprecedented scale, and the momentum is expected to continue with the industry growing at a 13 percent CAGR to $136 billion by 2021, according to a report.

Fueled by digital, Indian travelers are expected to spend an additional $24 billion on online travel bookings over the next 3 years. The report outlines how India spends on travel, the influence of online channels in their purchase journey, and potential growth opportunities for travel businesses until 2021.

Deep diving into the $136 billion spends, the report cites a 12 percent growth in transportation ($50 billion), 13 percent growth in lodging ($21 billion) and consumption, which includes spends on shopping, recreation and food, to grow at 13 percent ($65 billion) over the next three years. Additionally, as more people come online, smartphone penetration improves and use of digital payments goes up, the report estimates that Indian travelers will spend an additional $24 billion on online travel bookings over the next three years, a growth from 25 percent in 2018 to 35 percent in 2021.

Online is a significant source of research

Elucidating the planning journey of Indian travelers, both for business and leisure, the report calls out five phases of a customer journey – Interest, Research, Booking, Experience and Sharing.  The report states that during key research-heavy phase of interest, research and experience, digital plays a pivotal role with over 86 percent of consumers being influenced by online channels. During this phase, travelers spend their maximum time on search, travel tour provider websites, price comparison websites, and travel articles. Online video too plays a significant role with 21 percent of travelers being influenced by this platform. In the booking and sharing phase, the report states that nearly 60 percent of customers book transport and lodging online, and over 50 percent share feedback online with social media being the dominant platform.

Talking about the market opportunities for online travel players, Vikas Agnihotri, Country Director – Sales, Google India said, “New users perceive that online channels are geared towards the more frequent flyers and experience-oriented travelers; and existing travelers research online but the lack of trust in payments and booking experience make them end up booking offline. If travel players tap these online users through personalized marketing, messaging and travel plans, they can further augment online travel bookings. This can be done by adopting digital technologies to influence customers early in the journey and moving from one-time engagement to ongoing relationships to have a positive impact.”

“There is a perception amongst consumers that online channels are geared towards premium customers, along with a marked distrust around payment and pricing terms. It is imperative for businesses to address these concerns in order to effectively tap into the growing base of users.” Arpan Sheth, partner Bain & Company said.

Decoding the Indian travelers

The report further identified the five cohorts of travelers in India, across business and leisure travel, and categorized each against their online research behavior:

  • Frequent flyers: Nearly 70 percent of them booked online, cumulatively spent $17 billion in 2018. They make their choices based on convenience, availability, brand preference and past experiences.
  • Budget business traveler: 86 percent of them researched online whereas only 60 percent book online, cumulatively spent $20 billion in 2018. This cohort makes their decisions based on cost of travel, availability and consultation amongst their personal business network.
  • Experience-oriented traveler: Around 70 percent of their bookings were done online. and cumulatively spent $22 billion in 2018. They extensively research both online and offline for ‘authentic’ experiences and convenience of options; display high loyalty towards preferred brand of airlines or hotels and actively share experiences.
  • Budget group traveler: 90 percent researched online and 55 percent booked online, cumulatively spent $29 billion in 2018. They make multiple decision-makers in the process and take the final decisions based on minimal cost.
  • Occasional travel visiting friends/relatives: 92 percent researched online but only 60 percent booked online, spent $6 billion in 2018. They maximize family convenience within a budget and believe online terms and conditions are restrictive.

However, challenges remain in meeting the expectations of these travelers. Customers perceive online channels geared towards premium cohorts (frequent flyer and experience-oriented traveler), while mass cohorts, with $55 billion in spending, remain underpenetrated. There are about 160 million non-transacting active Internet users in India with only 5 percent of online travelers from Tier-2 or Tier-3 cities. There is a significant (20 percent) difference between the booking rates of premium cohorts and mass cohorts, the latter being also dissatisfied with online channels (~33 percent satisfied) vs. premium cohorts (~42 percent). The second challenge is in penetrating existing users who exhibit a marked distrust in use of online channels to make bookings, especially around payment and pricing terms and booking experience compared with offline channels. Consequently, their online usage drops between the research (>86 percent online influence) and booking phases (~40 percent offline bookings).

How travel businesses need to adapt to the needs of online consumers

The report cites five major shifts that marketers need to make to market to the online travelers – First, alleviate consumer concerns by improving the booking and payment experience to build a trusted brand and increase adoption. Second, they need to address the negative customer perception issues by mass customization to drive higher share in the segment. They also need to utilize consumer technology to penetrate mass segments (standardize, enable sharing), reach non-transactors (build offline presence), and create new user access.  Moreover, they need to find innovative and frugal ways to package the experience to increase both adoption and retention.  Finally, they need to create a robust digital backend to adapt to customer needs across the purchase journey.

“The contribution of travel and tourism’s spend in India has reached developed market levels, from 6.7percent of GDP in 2013 to 9.4 percent in 2018. This growth, combined with a rapidly growing internet user base and adoption of online bookings will lead to $24 billion in incremental revenues through online channels by 2021. In order to benefit from this trend, businesses need to actively increase new user adoption and increase penetration in the existing user base across the purchase journey.” Joydeep Bhattacharya, partner Bain & Company said.

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New team member at The Pod Hotels

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The Pod Hotels is striving to address the rapidly-increasing demand for affordable lifestyle hotels targeted at progressive-minded and budget-conscious travelers who are creative and ambitious and who maintain high expectations when it comes to authentic experiences, smart design and intuitive technology.

As part of this progress, BD Hotels today announced the appointment of Rani Gharbie as the Head of Acquisitions & Development for The Pod Hotels, BD Hotel’s highly profitable micro-hotel concept to replicate this successful business model in even more key markets including Miami, San Francisco, Chicago, Austin, Boston, Nashville, Seattle, Montreal, Toronto, and Mexico City, amongst others.

Gharbie formerly oversaw development and acquisitions for North America at Virgin Hotels where he actively contributed to grow the brand’s footprint in key markets.

As Head of Acquisitions & Development working closely with BD Hotels owners Richard Born and Ira Drukier, Gharbie will be responsible for identifying potential investment opportunities and bringing together strategic partners and investors to fund future projects in numerous markets. He will leverage BD Hotels’ expertise in hotel development, investment and operations to expand The Pod Hotels brand across the country and eventually globally.

“Rani joins us at a pivotal time as we scale The Pod Hotels portfolio exponentially in North America” said Richard Born, Owner of BD Hotels. “He will undoubtedly be a tremendous asset as he brings over 20 years of experience in hotel acquisitions, development and operation.”

“I’m looking forward to expanding the profitable model Richard and Ira created to key markets nationwide,” said Gharbie. “I see great growth potential for the brand as there is an increased desire from today’s travelers to stay at smart, innovative brands like The Pod Hotels.”

Prior to joining Virgin Hotels, Gharbie was the Managing Director and Founder at Cedar Funds, a New York City based development and investment firm with a focus on progressive hotel and real estate assets, as well as regional Director of Development with InterContinental Hotels Group (IHG). In addition, Gharbie is an Adjunct Professor at Columbia’s Masters in Real Estate Development program, where he teaches the spring course Private Equity Development, Hotel Focus. He holds a Masters Degree from the program, an MBA from the HEC Business School in Montreal, a Bachelor degree in Hotel Management from the Glion Hotel School in Switzerland, and a Certificate in Hotel Real Estate Investments and Asset Management from Cornell University in New York.

The Pod Hotels currently has five properties in the portfolio, three of which opened over the past two years (the brand’s flagship Pod Times Square opened in January 2018; Pod DC and Pod Brooklyn opened in 2017), with the brand recently announcing two more hotels in the direct pipeline (Pod Philly opening in fall 2019 and Pod LA slated for 2020). With its functional guestrooms, vibrant communal space and flexible design, The Pod Hotels presents superior investment returns when compared to legacy hotel brands of similar positioning.

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Brexit has not deterred business travelers in the UK

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UK’s 2018 Hotels Market Report shows that the UK regional capitals are performing strongly with overall room nights booked growing by 8% across the top 250 UK cities.

London continues to be business travelers’ favorite capital for work trips with 663,000 room nights booked in 2018, an increase of 5% when compared to 2017. But Edinburgh experienced the highest level of growth in 2018 with room nights booked increasing by 16%, Belfast was up 13% and Cardiff up 5%.

The 2018 Hotels Market Report analyses data from corporate hotel bookings made between January and December 2018 by Advantage’s TMC members, who represent around 40% of the UK business travel sector, highlighting business travel trends and booking behaviour.

The report also shows significant growth for cities in the Midlands and North East, with Derby seeing the highest growth with 31% more booked room nights compared to 2017, while York, Nottingham and Gateshead also saw double-digit percentage increases.

Top Ten UK Cities – Booked Room Night Percentage Increase (year-on-year), January – December 2018

1. Derby – 31%
2. York – 22%
3. Plymouth – 21%
4. Inverness – 20%
5. Nottingham – 18%
6. Edinburgh – 16%
7. Reading – 15%
8. Belfast – 13%
9. Norwich – 11%
10. Gateshead – 10%

Global Results

The business world continues to travel widely, with the 2018 Hotels Report recording that hotel demand remains strong in many international cities with New York, Auckland, Wellington, Houston, Paris and Sydney topping the Advantage Top Cities list. In total, worldwide volume grew by over 393,000 room nights, a total increase of 8.74% compared to 2017, indicating that SME (Small and Medium Enterprise) corporate accounts, in which Advantage TMCs specialise, continue to perform strongly.

The total number of bookings made by Advantage business travel members in 2018 saw similar growth – up 8.76% – while the average length of stay remained constant, at 1.87 nights. Increased demand and higher occupancy globally meant hotel rates have increased by US$2 to an average daily rate (ADR) of US$169.41.

The report also looks at trends on bookings and ADR for cities and locations around the world, with New York once again topping the list as the highest volume worldwide city outside the UK, with 90,799 room nights booked at an average rate of US$395.97 per night. Increases were also seen in Bangalore (up 54%), Kuala Lumpur (up 36%) and Boston (up 27%).

The corporate hotel sector continues to grow, with another significant increase in bookings year-on-year, made by independent TMCs. Despite continued uncertainty in both the global and UK economies including Brexit, hotel room night demand is at record levels in many destinations. Although not all destinations in Britain saw an increase in room nights booked, ADR remained strong.

The report is representative of hotel bookings made across most of the major international and independent hotel groups including: Accor, Apex Hotels, Choice Hotels, Citadines, Clayton Hotels, Design Hotels, The Doyle Collection, Edwardian Hotels, glh Hotels, Hallmark Hotels, Hilton, HotelREZ, Hyatt, House of Daniel Thwaites, IHG, Jurys Inn & Leonardo Hotels, Loews Hotels, Macdonald Hotels, Maldron Hotels, Melia Hotels International, Millennium Hotels & Resorts, The Montcalm Hotels, NH Hotels, O’Callaghan Collection, Omni, Park Plaza, Pegasus, QHotels, Quest, Rotana, Radisson Hotel Group, Sabre Hospitality, Small Luxury Hotels, TravelClick, Travelodge, Village Hotels Club, WorldHotels Collection and Wyndham Hotel Group.

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Brexit uncertainty, but LHR is doing well

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Despite Brexit uncertainty, Heathrow remains a bright light for the UK, with the role we play in keeping people and products moving evident. Our new domestic connections will be pivotal in linking more regions and nations to global opportunities, benefiting all corners of this great country and we look forward to announcing many more of these as part of the expansion programme,”  Heathrow CEO John Holland-Kaye said

  • Heathrow’s passenger numbers continued to climb in March, with over 6.5 million passengers travelling through the UK’s only hub airport, ringing in the 29th consecutive month of record growth for the airport. Notable spikes in the previous month were St Patricks and Mother’s Day, attitudes towards travel remain strong despite ongoing uncertainty around Brexit’.
  • Africa performed especially well over the past month, increasing by 6.2% compared to the same time last year. Domestic connections also saw a slight uplift (+0.2%) with British Airways launching its 2nd service to Inverness and Flybe growing their loads by more than a fifth (23%) with an inaugural flight to Cornwall on March 31.
  • More than 149,000 metric tonnes of cargo travelled through the UK’s biggest port by value, further demonstrating the importance of Heathrow in a post Brexit world.
  • Both Latin America and Africa saw remarkable double digit growth with the former up 23% on 2018 due to additional services to Brazil and increased volumes to Mexico. Freight to and from Africa grew by 11%, thanks to Virgin’s growth on routes to the continent.
  • Two of Heathrow’s Terminals made it into the top five globally, with Terminal 5 taking top spot. In addition, Heathrow was voted amongst the world’s top 10 airports overall and won “Best airport in Western Europe” and “World’s Best Airport Shopping”.
  • In March, Heathrow launched the airport’s new Innovation Prize to fund ideas and solutions addressing aviation environmental impact. The prize is sponsored by Heathrow’s new Centre of Excellence for Sustainability, which connects experts and offers Heathrow as a living laboratory to test and develop ideas that encourage sustainable aviation.
  • The expansion project reached another significant milestone, as the names and locations of the 18 shortlisted sites in the running to become offsite construction centres for Britain’s new runway were revealed. Shortlisted sites will now pitch to airport bosses for their chance to become one of the final four construction centres, to be announced early next year.
  • Heathrow announced the launch of their 10th domestic route. The route is operated by Flybe and links the hub airport to Cornwall in Newquay for the first time since 1997.

Heathrow CEO John Holland-Kaye said:

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GCC produces 1.8 million overnight stays in Germany during 2018

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The German National Tourist Board (GNTB) has announced that it will be showcasing a range of key destinations at Arabian Travel Market (ATM) 2019, which takes place at the Dubai World Trade Centre from 28th April to 1st May.

Participants from Germany partnering with the GNTB this year include the ‘Hotel Palace Berlin’; ‘Frankfurt Tourist and Congress Board’; ‘Baden-Baden Tourism Board’; ‘OUTLETCITY METZINGEN’, the State Tourist Board SouthWest-Germany (Baden-Württemberg Tourismus) and the Black Forest Highlands (Hochschwarzwald Tourismus).

The GNTB’s tourism partners covering local tourist boards, luxury hotels, hospitality, retail, spas and theme parks, each has its own unique proposition, whether spring, summer, autumn or winter, emphasising that Germany is a diverse and unique all year-round travel destination.

Underscoring the relevance of ATM to ‘Destination Germany’, Sigrid de Mazieres, Director for the Gulf countries at the German National Tourist Office (GNTO), an affiliate of the German National Tourist Board (GNTB), commented:

“ATM presents us with an ideal opportunity to showcase our wide-ranging tourism offering from dynamic cities to breathtaking countryside with fairytale castles, lush forests and mountains. In addition, there are great family attractions, excellent shopping centres and superb sightseeing opportunities – visitors will be fascinated by the incredible diversity that Germany has to offer.”

The GCC market is Germany’s third-largest non-European source market behind China and the US and is important for Germany. GCC travellers tend to stay an average of 11 nights and spend on average $5,300 per person per trip, significantly more than other international travellers.

According to the latest forecast from the GNTB, GCC nationals visiting Germany are expected to grow to 3.6 million overnight stays by 2030, compared with 1.8 million guest nights from Gulf nationals recorded in 2018, with key markets being UAE, Saudi Arabia and Kuwait.

The forecast increase is being attributed to the collective efforts of all German Tourism stakeholders identifying and accommodating the travel requirements of GCC nationals, not to mention the excellent connectivity provided through flights from the GCC to Frankfurt, Munich, Dusseldorf, Hamburg and Berlin. In Germany’s hospitality and retail sectors, it is common to meet Arabic speaking staff, familiar with Islamic culture and tradition. Hotels offer copies of the Quran and prayer mats on demand, connecting family rooms, plus restaurants serving halal food are easy to find.

Germany’s attraction as a destination of choice for tourists, is further illustrated by the number of visitors recorded in 2018. Last year, Germany’s inbound tourism figures reached record levels for the ninth year in a row. According to the German Federal Statistical Office, there were 88 million international overnight stays recorded (in accommodation establishments with at least ten beds) – an increase of 5% compared with 2017.

According to IPK World Travel Monitor’s annual survey, in 2017, Germany was the top ranked country among European tourists for cultural trips and with 13.1 million inbound business travellers from Europe, it ranked number one as a business destination in 2018.

The German National Tourist Board (GNTB) will be at ATM 2019 stand no. EU5930.

 

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55.9 million travelers: Passenger traffic in Portuguese airports up 5.8%

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Portuguese airports traffic increased by 6.2% in the first quarter of the year to over 11 million passengers, compared to the same period of 2018.

According to figures by Vinci Airports, which owns ANA – Aeroportos de Portugal, passenger traffic in Portuguese airports rose 5.8% in the past 12 months to 55.9 million passengers.

“In Portugal, traffic growth was particularly sharp in Faro (+12.3%) and Porto (+9.5%), reflecting the country’s continuous popularity amongst foreign tourists”, Vinci Airport said in a statement.

“At the Lisbon hub, traffic grew by 4.2%, despite the high base for comparison and the current capacity constraints”, the statement added.

The company also pointed out that there had been solid traffic growth (+6.4%) at the airports managed by Vinci Airports in the first quarter of 2019.

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Tourists are cashing in on Argentina’s economic woes

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International travelers are flocking to Argentina, taking advantage of the poorly performing peso to boost the value of their holiday spending money, according to latest data.

Bookings for March to May are ahead 11.2% compared to last year. For South America as a whole, bookings are ahead 5.8%.

In the preceding year to February, international arrivals in Argentina were up 3.9%, compared to 5.5% for the entire region.

Europe and Latin America are the fastest-growing markets for travel to Argentina. There is also an increasing number of travelers from China (+21.9%) and Israel (+15.9%), among the top ten countries by growth.

Heading the list is Uruguay with bookings ahead 34.3% on last year, for travel between March and May. The UK is showing a strong 33.5% growth for the same period.

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